By Myrna M. Velasco – December 22, 2018, 10:00 PM
from Manila Bulletin
The newly institutionalized corporate vehicle of Lopez-owned First Gen Corporation has filed an application for a notice-to-proceed (NTP) license with the Department of Energy (DOE) on its planned US$1.0-billion LNG import terminal venture.
FGEN LNG Corporation, which is the Lopez firm’s new subsidiary, disclosed to the Philippine Stock Exchange (PSE) that it already lodged its NTP filing with the energy department.
The company qualified that the application is in line with the policies and rules set forth under the Philippine Downstream Natural Gas Regulation, a policy prescription of the DOE.
“The application is for the construction of the FGEN Batangas LNG terminal project to be located in the First Gen Clean Energy complex in Batangas City,” the company said.
This new milestone follows the company’s signing early part of December of a joint development agreement (JDA) with Tokyo Gas Co. Ltd. to be its co-venturer in the project.
The Japanese firm cornered 20 percent in the project’s corporate vehicle – hence, reinforcing the stronghold of the Lopez firm to become a front-runner investor-candidate on the country’s proposed LNG import handling terminal.
“Upon reaching FID (final investment decision) under the JDA, the parties will enter into a definitive agreement to proceed with the construction of the FGEN Batangas LNG terminal project,” the company said.
First Gen has very strategic market for imported LNG because it has the biggest fleet of gas-fired plants in the country – namely its 1,000-megawatt Sta Rita, 500-MW San Lorenzo, 414MW San Gabriel and 97MW Avion plants.
The company is also eyeing to build two more facilities as expansion of its existing gas generating assets – the planned Sta Maria and Saint Joseph plants that are targeted to be reaching commercial phase by 2022-2023 for additional capacity of 500MW each.
Beyond the requirement of its gas-fired plants, First Gen is similarly eyeing other off-takers of the LNG facility, including the 1,200-MW Ilijan plant of South Premiere Power Corporation, a subsidiary of San Miguel Energy Corporation.